The Race to $1,000 per Share: Will Google or Amazon Cross the Finish Line First?

GOOG Free Cash Flow (TTM) Chart

Amazon and Google are two of the most iconic technology companies today. And they happen to be two of a growing number of high-priced stocks on the stock market, trading for more than $500 per share. Amazon shares closed Thursday at $534 while Google C shares closed Thursday at $626 and Google A shares closed Thursday at $655.

We asked three of our contributors which stock would reach $1,000 per share first. Both companies have a strong case and one answer might surprise you.

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GOOG Free Cash Flow (TTM) data by YCharts .

Amazon, on the other hand, would be much easier for consumers to abandon if another good option comes along. From a stock perspective, it has largely lived off the market's positive sentiment of the company to attain a high stock price, not strong earnings or cash flow. Someday the market will demand fundamental results and that's when I question whether the company can deliver. Online retail is fundamentally a low-margin business, streaming video companies have failed to turn a solid profit, and Amazon has failed miserably at getting further ingrained in our culture with smartphones and its own app store.

Eventually, fundamentals will matter to the market and between Google and Amazon, the fundamental strength goes to Google. That's why it's my pick to hit $1,000 per share first.

Dan Caplinger : Those who've looked at Google over the years will quickly remember that the company has already won a previous version of this contest, with the search-engine giant's shares having first vaulted over the $1,000 mark in late 2013. Only after its unusual split into Class A and Class C shares did the stock fall back into triple-digit territory, and the disparity in total market capitalization still reflects the perceived advantage that investors see for Google over Amazon.

That aside, I'm a big believer in what I can see, and Amazon has consistently demonstrated that it's more interested in expanding its revenue reach than it is in delivering bottom-line profits to investors. Brian's points about a potential end to Amazon's aggressive spending are valid, but others have made predictions along those lines for years, and Bezos seems to have an endless capacity for visionary ideas that also happen to involve delaying consistent profit growth another few years down the road. Even with some of Google's challenges in adapting to a mobile-driven world, its reliable profitability and value-priced shares make it a more attractive stock in my book, and the $100-per-share head start that Google's shares have over that of Amazon currently makes it a no-brainer pick as more likely to regain the $1,000 level first.

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The article The Race to $1,000 per Share: Will Google or Amazon Cross the Finish Line First? originally appeared on

Brian Stoffel owns shares of and Google (C shares). Dan Caplinger owns shares of Google (C shares). Travis Hoium has no position in any stocks mentioned. The Motley Fool owns and recommends and Google (C shares). Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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